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Setler [38]
3 years ago
15

You are placing an order for printer paper for your office, and the supplier offers to

Business
1 answer:
-BARSIC- [3]3 years ago
8 0

Answer:

A- Because the supplier can improve its economies of scale by selling in bulk

Explanation:

You might be interested in
.) A currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. The one-year interest rate in th
d1i1m1o1n [39]

Answer:

The question does not fit the options, since the options all refer to a 2% interest rate in US dollars and a 6% interest rate in euros. While the question states that the interest rate in US dollars is 5% and the interest rate in euros is 4%.

The answer to the question is:

If you borrow $1,000,000 today, you will be able to purchase 800,000€. Or if you borrow 800,000€ today, you will be able to purchase $1,000,000.

Since the forward rate is higher, you should borrow dollars, invest in euros and after a year, purchase back dollars and pay back your debt.

Gain:

= 800,000€ x 1.04 = 832,000€ x 1.4 = $1,164,800, then you pay back your loan = $1,164,800 - ($1,000,000 x 1.05) = $1,164,800 - $1,050,000 = $114,800 gain

Options C will also yield gains:

option C = borrow 800,000€ and buy $1,000,000. After one year you will have $1,020,000 which you can use to purchase 850,000€. Your gain = 850,000€ - (800,000€ x 1.06) = 2,000€

7 0
3 years ago
Keyser Beverage Company reported the following items in the most recent year.
sladkih [1.3K]

Answer:

Net cash provided by operating activities = $49,730

Net change in cash during the year = $56,750

Explanation:

CASH FLOWS FROM OPERATING ACTIVITIES  $

Net Income     43,490

<em>Adjustments to reconcile net income to      </em>

<em>net cash provided by operating activities:      </em>

Depreciation on Fixed Assets    7,970  

<em>(Increase) Decrease in Current Assets:      </em>

Accounts Receivables    (10,700)

<em>Increase (Decrease) in Current Liabilities:     </em>

Accounts Payable     8,970

NET CASH PROVIDED BY OPERATING ACTIVITIES 49,730

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Equipment    (9,000)

NET CASH USED IN INVESTING ACTIVITIES  (9,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Cash Dividends    (5,480)

Issue of notes payable    21,500

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 16,020

NET INCREASE (DECREASE) IN CASH   56,750

3 0
3 years ago
Selling and pledging accounts receivable LO C3 On June 30, Petrov Co. has $128,700 of accounts receivable. July 4 Sold $7,245 of
irakobra [83]

Answer:

Explanation:

The journal entries are shown below:

On July 4:

Accounts receivable A/c Dr $7,245

          To Service revenue A/c $7,245

(Being service provided is recorded)

Cost of goods sold A/c Dr $5,000

           To Merchandise inventory A/c $5,000

(Being inventory sold at cost)

On July 9:

Cash A/c Dr $19,200

Factory fee expense A/c Dr $800

         To Accounts receivable A/c $20,000

(Being payment is received)

On July 17:

Cash A/c Dr  $5,859

         To Accounts receivable A/c  $5,859

(Being cash is received)

On July 27:

Cash A/c Dr  $10,000

   To Notes payable A/c  $10,000

(Being the amount is borrowed)

No journal entry required

4 0
3 years ago
Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels
Hatshy [7]

Answer: 10 bushels

Explanation:

If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:

= 100 / 100

= 1 work hour

For bushels however, 1 worker hour produces:

= 25 / 100

= 0.25 bushels of corn

If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.

Bushels of corn produced is therefore:

= 40 * 0.25

= 10 bushels

5 0
2 years ago
The price elasticity of supply for umbrellas is 2. Suppose you're told that following a price increase, quantity supplied increa
salantis [7]

Answer:

15%

Explanation:

The formula and the calculation of the price elasticity of supply are presented below:

Price elasticity of supply = (Percentage change in quantity supplied ÷ percentage change in price)

where,

Price elasticity of supply = 2

And, the percentage change in quantity supplied is 30%

So, the percentage change in price is

= 30% ÷ 2

= 15%

7 0
3 years ago
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